The federal and Ontario governments have now formally resolved the administrative issues associated with implementing the enhanced HST rebate for new homes.

The required regulations have been finalized and are available for public viewing:

Federal Regulation: P.C. 2026-610

Ontario Regulation: O. Reg. 196/26

The release of these regulations provides the clarity and certainty that builders, purchasers, lawyers, lenders, and sales teams have been waiting for since the enhanced rebate was first announced on March 25, 2026.

This represents a significant step forward for Ontario’s new housing market. It confirms how the enhanced HST relief program will be administered and allows transactions to proceed with greater confidence and reduced risk.

Administration of the Enhanced HST Rebate for New Primary Residences

For eligible purchasers buying a new home as their primary residence, it is generally recommended that the HST rebate be assigned to the builder. This approach enables purchasers to benefit from a reduced effective purchase price and may lower the amount they need to finance through their mortgage.

The administration process is expected to work as follows:

• Builders will apply for the assigned rebate through the same portal currently used for the Ontario New Housing Rebate, including the existing rebate of up to $24,000.
• The Canada Revenue Agency (CRA), acting on behalf of both the federal and Ontario governments, will verify eligibility using the same criteria applied to the current New Housing Rebate.
• The CRA will review applications submitted using form GST190 and, once eligibility is confirmed, will reduce the builder’s HST liability for the 8% provincial portion. This form will be updated to reflect the new program, and no changes are expected to the existing schedule RC7190-ON.
• The portal now includes an additional section requiring applicants to provide consent for the CRA to share necessary information with the Ontario Ministry of Finance for the purpose of issuing the 5% federal GST portion of the rebate to the builder.
• The CRA will provide Ontario’s Ministry of Finance with a monthly list of approved 5% GST rebate claims. The Ministry has committed to issuing electronic payments to builders within 30 days. Requests for cheque payments may take longer than this 30-day service standard.

An infographic published by CRA outlining an example of the claim process can be found here.

While assigning the rebate to the builder is expected to be the most efficient method, purchasers may still choose to complete the transaction inclusive of HST and apply directly to the CRA for the rebate.

Enhanced New Residential Rental Property Rebate (NRRPR)

The Enhanced New Residential Rental Property Rebate will continue to be administered in the same manner as it was prior to the March 25, 2026, announcement.

Eligible new rental housing projects may qualify for a rebate of up to $130,000, provided they meet the criteria outlined under the existing NRRPR framework. Additional information on the program can be found here.

Members are encouraged to review eligibility requirements and consult their tax, accounting, and legal advisors to determine how the enhanced rebate applies to their specific rental housing projects.

A Significant Advocacy Win for Housing Affordability

The enhanced HST rebate represents a major advocacy achievement for Ontario’s residential construction sector and an important affordability measure for new homebuyers.

Since the March 25 announcement, more than 5,000 new home sales have taken place across Ontario that may not have otherwise occurred. This accounts for over one-third of all new home sales in Ontario in 2025 and highlights the immediate impact of reducing the tax burden on new housing.

However, despite the positive policy announcement, the absence of clear administrative guidance led to several months of uncertainty for builders, purchasers, and the broader housing market.

During this period, some purchasers became hesitant to proceed, as agreements of purchase and sale increasingly included clauses requiring them to cover the HST amount if the rebate was not ultimately returned to the builder. Some builders began slowing sales activity due to accumulating potential HST liabilities, with legal advisors cautioning about the associated financial risks.

The release of the federal and provincial regulations has now resolved this uncertainty.

DRHBA acknowledges the efforts of both the Government of Canada and the Government of Ontario in delivering this important affordability measure and addressing the administrative challenges. We also recognize the contributions of members, local associations, and industry partners who helped emphasize the urgency of this issue.

Throughout this process, advocacy efforts by OHBA and BILD have focused on ensuring the rebate fulfills its intended purpose: improving affordability, restoring purchaser confidence, enabling builders to move projects forward, and helping to restart housing supply across Ontario.

Member Guidance

Members should consult with their legal, accounting, and tax advisors to determine how this administrative update impacts

• Agreements of purchase and sale
• Disclosure language
• Accounting and tax treatment
• Purchaser communications
• Mortgage and lender communications
• Sales processes

Members should also ensure that their internal sales, finance, and legal teams are informed of the updated administrative procedures – particularly the requirement for consent to allow information sharing between the CRA and the Ontario Ministry of Finance to facilitate payment of the 5% federal portion of the rebate.

OHBA and BILD will continue to monitor implementation closely and provide members with updates as further technical guidance or administrative details become available. The Ontario government will also continue to publish updated guidance on both the enhanced NHR and NRRPR programs on the Ministry of Finance website.

This is a positive and important development. The enhanced HST rebate has already helped bring purchasers back into the new home market. Now that the administrative process is clearly defined, the industry can move forward with renewed confidence and continue delivering the homes Ontario families need.